New Zealand exposure drafts issued to begin implmentation of new accounting framework
The New Zealand External Reporting Board (XRB) and the New Zealand Accounting Standards Board (NZASB) have issued four Exposure Drafts (EDs) together with accompanying Invitations to Comment relating to the new Accounting Standards Framework for for-profit entities.
The exposure drafts are the first stage for the roll-out of the new accounting standards framework established by the XRB Board and recently approved by the New Zealand Minister of Commerce. Under that roll-out, the for-profit aspects of the new accounting standards framework will be effective before the public sector aspects, which in turn will be effective before the not-for-profit sector aspects.
Under New Zealand standard-setting arrangements, External Reporting Board Standard A1 Accounting Standards Framework (XRB A1) establishes which entities comply with which standards.
The XRB proposes to rewrite XRB A1 in a number of stages:
- Stage 1, which is proposed to be effective from 1 November 2012, reflects the new for-profit framework while retaining the existing public benefit entity (PBE) framework
- Stage 2, which is proposed to be effective from 1 July 2015, will reflect the new for-profit framework and the new PBE framework as it applies to public sector entities, while retaining the existing framework for not-for-profit entities
- Stage 3, which is proposed to be effective from 1 March 2016, will reflect the new framework as it applies to all entities required to prepare general purpose financial reports (GPFR), including not-for-profit entities.
In addition, the NZASB has issued three exposure drafts which give effect to the change in framework, and contain proposals for the accounting standards that will apply to 'Tier 1' and 'Tier 2' for-profit entities (NZ IFRS and NZ IFRS RDR respectively).
Submissions on the four Exposure Drafts close on Friday 3 August 2012.